China previously “sailed on” economically while other countries struggled, but the world’s second largest economy may have a difficult path ahead, according to one strategist.”China has reached that level of its development where a lot of emerging markets typically find the going getting tougher,” said Mark Jolley of CCB International Securities.He pointed to the trend of deglobalization, friction between the U.S. and China as well as the weak global economy.”On both sides of the Pacific we hear a lot of wishful thinking that decoupling will promote rather than hurt domestic growth. We disagree,” Ethan Harris wrote in a BofA Global Research note published Friday.”Decoupling is a negative sum game that hurts both countries. It means abandoning comparative advantage and stranding capital,” the global economist at Bank of America Securities added, though he acknowledged that there may be “strong geo-political and reliability reasons” for decoupling.Beyond the near-term rebound in growth we see ongoing downward pressure on potential or trend growth in China.Ethan HarrisGlobal economist, Bank of America SecuritiesDomestically …
